Fairfax Media (FXJ)

Citigroup has retained its “neutral" on
Fairfax Media
with a target price of 60¢ per share after the media company announced another organisational restructure.

The broker says the key change is the alignment of property verticals under the Domain brand. Citi broadly welcomes the changes, but warns that little has changed about the company’s operational outlook.

“While we welcome the reorganisation as a necessary move given the structural shifts to newspapers, it does little to change our fundamental view on the core valuation of the business, and the execution risk remains high."

Citi is forecasting core earnings per share of 5.1¢ in 2013, 5.2¢ in 2014 and 5¢ in 2015. Fairfax Media posted core EPS of 8.8¢ in 2012.